Banking, Commerce and Insurance Committee
February 11, 2025
Committee Chair: Sen. Mike Jacobson | Bills Heard: 5 | Full Transcript (PDF)
LB482: Amend Nebraska Revised Statute 44-359 to limit automatic attorney fee awards in postloss assignment claims
Introduced by: Sen. Beau Ballard | Testimony: 4 proponents, 4 opponents, 0 neutral | Read bill text (PDF)
Sen. Ballard seeks to limit automatic attorney fee awards in contractor insurance disputes. LB482 would remove automatic attorney fee awards when contractors who hold postloss assignments of insurance claims sue insurers, instead leaving fee decisions to judicial discretion. The bill targets a practice where contractors bundle multiple small property damage claims and sue for attorney fees that dwarf actual damages.
Why it matters: Proponents argue the practice drives up homeowner insurance premiums by encouraging frivolous litigation. Opponents counter that only 2 cases in 20 years have resulted in fee awards, and the bill strips homeowners of leverage to hold insurers accountable.
What they're saying: - Proponents: "Contractors will get 10 or 15 of these postloss assignments and then sue a particular insurer, seeking relatively meager proceeds, but really looking for that attorney fee award" (Robert M. Bell, Nebraska Insurance Federation). - Opponents: "There's only been 2 in the last 20 years, and there's been over 250,000 property claims in that time" (James Eggers, Millard Roofing).
By the numbers: 4 proponents, 4 opponents; 3 proponent letters, 1 opponent letter received.
What's next: No vote was taken. Sen. Jacobson indicated he wants to hear more from testifiers and may seek amendments before advancing the bill.
Committee sentiment: Supportive: Sen. Jacobson Unclear: Sen. von Gillern
Sentiment estimated from questions and comments — not stated positions.
LB338: Prohibit life, disability, and long-term care insurers from using genetic information for underwriting absent clinical diagnosis
Introduced by: Sen. Dave Wordekemper | Testimony: 8 proponents, 2 opponents, 0 neutral | Read bill text (PDF)
Sen. Wordekemper seeks to ban genetic discrimination in life and long-term care insurance. LB338 would prohibit life insurers, disability insurers, and long-term care insurers from using genetic test results to deny coverage or set premiums unless the applicant has a clinical diagnosis of disease. The bill extends protections already in place for health insurance under federal GINA law.
Why it matters: Proponents argue fear of genetic discrimination deters people from getting potentially life-saving tests. Opponents worry the bill creates adverse selection, allowing people with genetic knowledge to buy more insurance while others subsidize the risk.
What they're saying: - Proponents: "My decision to have genetic testing and to know my cancer risk now penalizes me and more so, my family, from the same security that other families are granted" (Brandi Muhle, Hereditary Cancer Foundation). - Opponents: "If you have one of these genetic predispositions and we don't know that, we cannot properly assess premium and the risk" (Robert M. Bell, Nebraska Insurance Federation).
By the numbers: 8 proponents, 2 opponents; 16 proponent letters, 2 opponent letters; Florida is only other state with similar law (passed 2020).
What's next: No vote was taken. Committee heard extensive testimony on both sides with significant debate among senators about balancing genetic privacy against insurance underwriting principles.
Committee sentiment: Supportive: Sen. Dungan, Sen. Bostar Skeptical: Sen. Jacobson, Sen. Hardin
Sentiment estimated from questions and comments — not stated positions.
LB326: Update insurance laws to align with NAIC model changes and repeal obsolete health insurance provisions
Introduced by: Sen. Mike Jacobson | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Sen. Jacobson introduces technical cleanup bill updating Nebraska insurance law. LB326 makes several updates to align Nebraska law with national model laws, including new authority to regulate lead generators who mislead consumers about insurance products, updates to guaranty fund coverage rules, and clarification on accounting standards for mutual holding companies.
Why it matters: The bill maintains Nebraska's status as a desirable place for insurance companies to be domiciled while addressing consumer protection issues like misleading insurance solicitations.
What they're saying: - Director Dunning: "Lead generators are a very useful part of the process of bringing buyers and sellers together. But some of the lead generators have engaged in conduct that is annoying and troubling for the policyholders."
By the numbers: 2 proponents, 0 opponents; no letters received.
What's next: No vote was taken. Sen. Jacobson waived closing, indicating straightforward support for the technical updates.
Committee sentiment: Supportive: Sen. Bostar, Sen. Hardin
Sentiment estimated from questions and comments — not stated positions.
LB325: Create exemption to Nebraska director residency requirement for certain large, publicly traded insurance companies
Introduced by: Sen. Mike Jacobson | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Sen. Jacobson proposes narrowly tailored exemption to director residency requirement. LB325 would allow certain large, publicly traded insurance companies to operate without a Nebraska resident director if they meet strict criteria including 25+ years of Nebraska domiciliation, 500+ Nebraska employees, and unchanged controlling ownership for 10 years.
Why it matters: The exemption removes a regulatory impediment that could discourage insurance companies from remaining domiciled in Nebraska, while maintaining strong oversight through SEC regulations and director qualification requirements.
What they're saying: - Tyler Tigges, Great West Casualty: "The residency requirement may impact certain entities while having no impact on others, depending on their business and their affiliate structure."
By the numbers: 2 proponents, 0 opponents; no letters received.
What's next: No vote was taken. Sen. Jacobson waived closing. The bill appears to have committee support as a business-friendly update to insurance domiciliation rules.
Committee sentiment: Supportive: Sen. Hardin, Sen. Hallstrom
Sentiment estimated from questions and comments — not stated positions.
LB232: Require life insurers to provide 30-day notice of policy lapse to collateral assignees and allow seniors to designate third-party notice recipients
Introduced by: Sen. Bob Hallstrom | Testimony: 3 proponents, 3 opponents, 0 neutral | Read bill text (PDF)
Sen. Hallstrom pushes for notice requirement when life insurance policies lapse. LB232 would require insurers to notify banks and other collateral assignees at least 30 days before a life insurance policy lapses due to nonpayment. The bill also allows seniors 65+ to designate a third party to receive lapse notices, protecting against inadvertent policy termination due to cognitive decline.
Why it matters: Banks use life insurance as collateral for loans; without notice, collateral can disappear without lender knowledge. Seniors may inadvertently let policies lapse due to missed notices or cognitive decline.
What they're saying: - Kevin Postier, Henderson State Bank: "We had made the loan with that as collateral. And when we went to file the claim against the policy, we're notified that we no longer had collateral." - Matt Holman, Ameritas: "If an insurer mistakenly fails to provide the required notice...the policy remains in force even if no premium is paid and no cash value is left on the policy."
By the numbers: 3 proponents, 3 opponents; 1 proponent letter, 1 opponent letter; bill introduced in 2022, 2023, 2024, and 2025.
What's next: No vote was taken. Sen. Jacobson indicated he does not expect to exec on the bill today but encouraged industry to negotiate specific amendments with the bill introducer rather than continuing to raise general objections.
Committee sentiment: Supportive: Sen. Jacobson, Sen. Bostar, Sen. von Gillern, Sen. Hallstrom
Sentiment estimated from questions and comments — not stated positions.
Session Notes
The committee heard five bills during the February 11, 2025 hearing. Committee Chair Sen. Jacobson opened with procedural instructions regarding testifier sheets, time limits (3-minute green light system), and written position letter deadlines. The hearing lasted approximately 5 hours, covering complex insurance policy issues ranging from attorney fees in property claims to genetic discrimination in life insurance underwriting. At the conclusion, Sen. Jacobson indicated he would like to exec on LB326 and LB325, which had no opposition and minimal controversy. The committee did not vote on any bills during this hearing.
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